IBM sues Amazon for patent infringement

Amazon grabbed a lucrative patent on "one-click," but IBM now says that it has …

When an 800 pound gorilla puts on a tophat and a bowtie and starts doing dances in the street, people can quickly forget that it's still an 800 pound gorilla. In the patent world, IBM is the simian in question, racking up more patents in the last five years than any other US company. And although it has been a big backer of increased patent quality, transparency, and peer review, make no mistake—IBM still intends to make money from its patent portfolio, and it recently filed suit against Amazon because the online retailer refused to pony up for licenses.

The cases were filed in federal court down in Texas, not because IBM or Amazon is based there, but because it's considered a "friendly venue" for patent claims. IBM asserts that Amazon has violated four patents:

The company claims that it has attempted to negotiate with Amazon for several years over the issue, but that the retailer has "shown no willingness to have meaningful discussions." "When someone takes our property, without our permission through a license, we have no option but to protect it through every means available to us," said John Kelly, IBM's Senior VP for Technology and Intellectual Property.

Amazon has its own patent stable, notably the "one-click" patent that it used to browbeat other online retailers into submission (but which is now being reviewed).

Will the patents stand up? As Internet-centric patents go, some of these are quite old. The '542 patent, for instance, was filed in 1990, while the '771 patent was filed in 1993. IBM claims that its technology is fundamental to much of Amazon's functionality. If the courts agree, Amazon could face a hefty bill. Is it time for the two great apes to stop beating their chests and start, err, talking?